High, Low, Cheap, Expensive - Relative comparison or WHEN is the right time?

All of us will be asking is the price is high and expensive or low and cheap? The school has taught us to make comparison.

The finance accounting academic taught us to derived valuations. BUT no school (university) ever bring up the subject if this is the RIGHT TIME to buy or sell.

Time has never been a consideration in the finance class.

While price valuation is the first benchmark, almost all the people that I know in the financial markets will never consider if the TIME is right or ripe!!!

IT is not the fault of my acquaintances, it is the fault of the higher education system for not exploring the TIME area or discipline.

A typical chart will have Price on the Y-axis and Time on the X-axis.

Time is about TREND CYCLE. I have sat for Finance exams back in 1987 during my graduate school BUT I sat for my TREND TIME CYCLE in the markets.

There is NO such subject as TREND TIME CYCLE taught in finance. Only valuations.

Even if one get the theoretical valuation correct per academic exam methodology, this does not translate into efficient use of funds and risks.

Risks in the academic theoretical valuation is about how far the price is away from the theoretical calculated valuation. 

Risk in the real world is about how far and long is one away from the cycle change.

The current price can either go above or below the theoretical valuation for a long period before the trend change or it can be a short period.

Irrespective of whatever valuation that one can derive, it is FIXED that there is either UP trend price cycle or DOWN trend price cycle. Also there will be trend change points.

One is comforted that buying below intrinsic valuation per academic theoretical calculation is like a bargain and not over paying, this does not translate into profitability if the price remain low below the intrinsic value for a long time. 

Buying above the intrinsic valuation is profitable is the price trend remains up above the intrinsic value above the entry levels.

Market is an arena where one get to use all the knowledge, experience and wisdom to make best use to use one money to invest efficiently and profitably